Macy's has warned investors that its profit margins would keep shrinking this year, sending shares in the chain tumbling more than 8 percent and affecting other department store stocks. Randal J. Konik, a stock analyst at Jefferies, said the struggling department store chain told analysts at an investor meeting Tuesday that its gross profit margin could be 0.6 percent to 0.8 percent lower than last year. Konik said in a note that Macy's is expecting its gross profit margins in the second quarter to be down 1 percent from a year ago. With new CEO Jeff Gennette, Macy's plans to scale back on promotions while aiming to increase the exclusive merchandise it carries to account for about 40 percent of total offerings, up from the current 29 percent. Macy's shares dropped 8.2 percent, or $1.96, to close at $21.90.

Source: ABC News June 06, 2017 20:51 UTC